A SURVEY ON THE ECONOMIC EFFECTS OF MINIMUM WAGE INCREASES ON SMES OPERATING IN MUGLA PROVINCE
ASGARİ ÜCRET ARTIŞLARININ MUĞLA İLİNDE FAALİYET GÖSTEREN KOBİ’LER ÜZERİNDEKİ EKONOMİK ETKİLERİNİN ARAŞTIRILMASI

Author : Ramazan TAŞÇI -- Tarık DURAN - Ali ÇIMAT
Number of pages : 424-441

Abstract

The aim of this study is to analyze the economic effects of the minimum wage increases on small and medium-sized enterprises. The minimum wage has possible effects on economic variables such as average wages, productivity, inflation, employment, income distribution and growth. In the study, these probable effects are investigated locally at the micro-firm level. Within the scope of the research, it is tried to determine the economic effects of minimum wage increases by using in-depth interview method with 50 firms operating in Mugla, employing between 10 and 250 workers and falling under the scope of SME. As a result of the survey, it is seen that the minimum wage increases are augmenting other wage levels. The minimum wage increases do not affect the productivity of employees for institutional reasons or being low in real terms. The minimum wage increases do not cause cost inflation owing to the supply side of the economy. The minimum wage increases do not cause unemployment. Minimum wage increases have positive effect on income distribution and increase purchasing power of the low income people. Minimum wage increases do not cause economic growth by increasing the amount of production.

Keywords

Minimum Wage, Compensation Policies, Manufacturing Industry, SME, Mugla Province

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